Cyber ‘Catastrophe Bonds’ Move Step Closer to Hitting Public Debt Markets

Cyber catastrophe bonds are emerging into public debt markets amid increased cyber threat risks for insurers. Beazley is reportedly exploring a $100 million cyber risk bond, while Axis Capital plans to issue a $75 million bond. The wider market for catastrophe bonds, tasked with managing uninsurable risks, could reach $40 billion in 2022, fuelled by climate change fears. Investors have been attracted by potential double-digit returns from the sector.